KARACHI:
According to Trading Economics, Pakistan’s consumer price inflation jumped to 31.5% in February of 2023, the highest rate since June of 1974. Within the last three years, inflation has risen at a rapid pace inflicting severe difficulties on the majority of the people. The government’s outdated and unfair revenue collection methods have turned the poor poorer while the rich continue to enjoy their privileges.
The shortage of foreign exchange reserves has further raised challenges for different industries as the State Bank has refused to issue Letters of Credit (LCs) to clear imports of many items including lentils, medicines and equipment, etc. Due to this food shortages and a potential health crisis are looming. The floods last year intensified problems as large swathes of agricultural land were destroyed. Some retailers have undertaken illegal practices like hoarding and artificial shortages to sell items at high prices. Pharmacists have been compelled to raise medicine prices. Constant fuel price hikes have led to an increase in public transport fares. All this has made survival difficult for the common man.
The absence of government relief and limited employment opportunities have raised frustration among the public. There is an increased risk of a spike in crime rates, child labour, and other social evils. Given that Pakistan has been experiencing economic challenges for decades, policymakers must realise the need to give up on old practices and replace them with a dynamic approach. The government should implement policies to control prices and redirect funds to offer relief to the public. It should work with local industries to create investment opportunities across the country as this will support economic growth and create employment.
Shumaila Soomro
Sukkur
Published in The Express Tribune, March 12th, 2023.
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